2021 Georgia Code
Title 13 - Contracts
Chapter 7 - Setoff and Recoupment
§ 13-7-7. Allowance of Setoff Against Original Payee in Action by Holder or Transferee of Negotiable Instrument Received Under Dishonor
When suit is brought by a holder or transferee on a negotiable instrument received under dishonor, no setoff shall be allowed against the original payee except such as is in some way connected with the debt sued on or the transaction from which it sprang.
(Orig. Code 1863, § 2845; Code 1868, § 2853; Code 1873, § 2904; Code 1882, § 2904; Civil Code 1895, § 3750; Civil Code 1910, § 4344; Code 1933, § 20-1305.)
Cross references.- Liability of parties to negotiable instruments generally, § 11-3-401 et seq.
JUDICIAL DECISIONSANALYSIS
- General Consideration
- Application
RESEARCH REFERENCES
Am. Jur. 2d.
- 11 Am. Jur. 2d, Bills and Notes, § 1027. 20 Am. Jur. 2d, Counterclaim, Recoupment, and Setoff, § 31.
C.J.S.- 70 C.J.S., Set-Off and Counterclaim, §§ 40 et seq., 49 et seq.
ALR.
- Setoff or counterclaim between prior parties to a negotiable instrument as available against one not a holder in due course, 70 A.L.R. 245.
What amounts to waiver, estoppel, or loss of bank's right to set off depositor's indebtedness against deposit or to apply deposit upon indebtedness, 143 A.L.R. 453.
Waiver or estoppel with respect to debtor's assertion, as setoff or counterclaim against assignee, of claim valid as against assignor, 51 A.L.R.2d 886.
